Bitcoin dropped 2.2% to $77,225.3, a day after surging almost 25%
Bitcoin dropped over 2% on Tuesday, as risk sentiment took a hit amid soaring oil prices sparked by escalating tensions between the U.S. and Iran, and a global bond rout. Losses were capped by top corporate holder Strategy resuming its purchases of the world’s largest cryptocurrency after two months.
Bitcoin dropped 2.2% to $77,225.3 by 21:59 GMT, a day after surging almost 25%. It was Bitcoin’s best monthly performance since November 2024.
Coming into last weekend, the U.S. and Iran had been at an impasse over control of the Strait of Hormuz, and U.S. president had appeared to shift his strategy from military strikes to economic warfare.
Iran retaliated by carrying out strikes against U.S. bases in Jordan.
U.S. president on Tuesday said the latest strikes were in response to the minelaying attempt and the attack on the Jordan base.
Iran responded again, hitting a U.S. base in Jordan.
Against this backdrop, oil prices climbed.
Elsewhere, jitters over Federal Reserve interest rate hikes also weighed on cryptocurrencies. A sell-off in U.S. Treasury yields and other bond markets picked up steam, driven by rising concerns about inflation and fiscal debt.
Expectations of a Fed rate hike in September have jumped since chair Kevin Warsh’s hawkish keynote address at the annual Jackson Hole Economic Policy Symposium on Friday. A soft reading on U.S. job openings on Tuesday further complicated the picture.
Strategy, the world’s biggest corporate Bitcoin treasury, disclosed on Monday that it purchased 4,603 coins for about $368.7 million last week.
The buy marked Strategy’s first Bitcoin purchase since late-June, and was funded through the sale of $602.8 million in common stock. The remainder of its proceeds were directed towards buying back Strategy’s STRC preferred shares.
The latest purchase brings Strategy’s holdings to 845,050 Bitcoin.
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